Chicago Title NCS Chicago: SYFCREC 2021

Surviving Your First Commercial Real Estate Closing I Mechanic’s Lien Risks & Construction Escrow Mechanic’s Lien Exceptions o Construction contracts existing at date of policy o “Any lien or right to a lien for services, labor or material heretofore or hereafter furnished imposed by law and not shown of the public record.” o No contracts let at date of policy o “Any lien or right to a lien for services, labor or materials furnished after date of policy.” 9 Surviving Your First Commercial Real Estate Closing I Mechanic’s Lien Risks & Construction Escrow Case Study - Seller’s Work How to deal with work done prior to date of policy o Sworn statements o Lien waivers What happens with the outstanding balance due? o Funded title indemnity o Unfunded indemnity 10 9 10 78